A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2009 · Q291 Mark

In January, a business had opening stocks of 25 200 units and closing stocks of 28 200 units. The profit calculated on marginal costing principles was $100 800 and that calculated on absorption costing principles was $120 300. What was the fixed overhead absorption rate per unit?

A$4.00

B$4.27

C$6.17

D$6.50

✓ Correct answer

D: $6.50

Oracle Prep sorts past-paper questions by topic, so you can drill Traditional costing methods and see which topics are most likely to come up next.

Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2009 Paper 1 Variant 2, question 29.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content